NEW DELHI: The Reserve Bank of India (RBI) has instructed banks to implement beneficiary account name verification system for fund transfers via Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) services by April 2025.
Banks giving RTGS and NEFT must provide this service across all platforms, including online banking, mobile applications, and physical branch locations to strengthen the security of digital fund transfers.
“All banks who are direct members or sub members of RTGS and NEFT are advised to offer this facility no later than April 1, 2025,” said the central bank.
RBI, in a notification issued on Monday evening, said that existing payment platforms such as UPI and IMPS currently allow senders to verify beneficiary names before transferring funds. This new system will enable users to verify the recipient’s account name prior to completing RTGS or NEFT transfers.
The central bank initially announced this proposal on October 9, 2024, highlighting its role in reducing transfer errors.
Additionally, the RBI has tasked NPCI with developing the required technical infrastructure and ensuring bank participation.
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